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All 25 Flashcards — Stakeholder interests and conflicts
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Question
For stakeholder conflict exam questions, what is Step 1?
Answer
Identify the specific stakeholder groups involved.
💡 Hint
Name the groups.
Question
State one common stakeholder conflict in business.
Answer
Owners/shareholders versus employees (cost minimisation versus higher wages and better conditions).
💡 Hint
Owners vs employees is the classic conflict.
Question
Stakeholder conflicts arise mainly because stakeholders have different ______.
Answer
Interests.
💡 Hint
Different priorities.
Question
How can communication reduce stakeholder conflict?
Answer
Keeping stakeholders informed about decisions and reasons reduces misunderstanding and builds trust.
💡 Hint
Explain the “why”.
Question
Why do some stakeholders have more influence than others?
Answer
Because they have greater power (ability to affect decisions) through finance, legal authority, collective action, or public pressure.
💡 Hint
Power = influence.
Question
What should you do after identifying stakeholder groups in a conflict question?
Answer
Explain what each stakeholder wants (their interests) in this situation.
💡 Hint
Interests drive conflict.
Question
How can governments influence businesses?
Answer
They can pass laws, set regulations, increase taxes, or impose penalties that force businesses to change.
💡 Hint
Government = regulation power.
Question
What is negotiation in stakeholder conflict management?
Answer
Finding a compromise where each group gains something (e.g. smaller pay rise plus better benefits).
💡 Hint
Give-and-take.
Question
Name one common stakeholder conflict.
Answer
Owners/shareholders versus employees.
💡 Hint
Classic conflict.
Question
Why can a business conflict with the local community?
Answer
Expansion may increase noise, traffic, or pollution, while the community wants a clean, quiet environment.
💡 Hint
Growth can create negative externalities.
Question
Why might a large customer have strong bargaining power?
Answer
If they account for a big share of revenue, they can demand better terms or threaten to switch suppliers.
💡 Hint
Big customer = leverage.
Question
Explain why shareholders and managers may conflict.
Answer
Shareholders may want higher dividends now, while managers may prefer reinvesting profits for long-term growth.
💡 Hint
Dividends now vs reinvest for later.
Question
How can transparency reduce conflict with stakeholders?
Answer
Publishing clear information on performance and impacts helps stakeholders trust decisions and reduces suspicion.
💡 Hint
Data reduces distrust.
Question
What is the “clash” part of a stakeholder conflict answer?
Answer
Explaining where and why the stakeholder interests conflict (who gains, who loses).
💡 Hint
Show winners and losers.
Question
State one strategy to reduce stakeholder conflict.
Answer
Negotiation (finding a compromise).
💡 Hint
Pick: communication / negotiation / transparency / CSR.
Question
Why is stakeholder mapping useful?
Answer
It helps managers focus on high power, high interest stakeholders who can strongly affect outcomes.
💡 Hint
Prioritise key stakeholders.
Question
How can suppliers and a business conflict?
Answer
Suppliers want prompt payment, while the business may want to delay payment to improve cash flow.
💡 Hint
Cash flow creates tension.
Question
Give one strategy you could suggest to reduce stakeholder conflict in an exam.
Answer
Offer retraining or redeployment to reduce employee opposition to automation (but explain cost trade-offs).
💡 Hint
Suggest + explain trade-off.
Question
How do trade unions increase employee influence?
Answer
They represent employees collectively and can organise industrial action such as strikes.
💡 Hint
Collective voice = power.
Question
What is stakeholder mapping used for?
Answer
To identify stakeholders by power and interest so managers focus effort on the most influential/concerned groups.
💡 Hint
Power + interest matrix.
Question
What does a stakeholder power-interest map help managers decide?
Answer
Which stakeholders need the most attention (high power and high interest).
💡 Hint
High power + high interest = priority.
Question
For 8–10 mark stakeholder conflict answers, what must you include?
Answer
At least two stakeholder groups, clear conflict analysis, a proposed resolution, and evaluation of whether it works.
💡 Hint
Analyse + resolve + evaluate.
Question
Give one reason short-term and long-term stakeholders may conflict.
Answer
Short-term shareholders may want quick returns, while employees and communities benefit from long-term stability and investment.
💡 Hint
Time horizon conflict.
Question
Exam rule for stakeholder conflict answers: what should you always do?
Answer
Apply the conflict and any solutions to the specific business in the scenario.
💡 Hint
Always apply to the case.
Question
Exam tip: How should you write conflict-reduction strategies?
Answer
Link each strategy to the specific conflict in the case and explain how it reduces tension.
💡 Hint
No generic lists.
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Stakeholders
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